Mitchells & Butlers, the owner of pub chains such as All Bar One and Harvester, has been engaged in active discussions with its banks over a possible rights issue.

According to people close to the situation, a cash call is one option that is being explored by the group as it looks for ways to raise extra funds to pay down debt and make pub acquisitions.

However, while talks have been taking place between the company and its banks, sources cautioned that nothing is imminent.

Financial Times